By Charles Ebi
Central Bank of Nigeria ,CBN, is scheduled to hold a primary market auction next week on Wednesday, where the authority will offer N162.018 billion for investors’ subscription across standard tenors. The Apex Bank plans the auction in order to absorb N27 billion worth of Nigerian Treasury bills, which is expected to mature the same week.
Analysts projected the discount rate to ease, citing strong liquidity levels in the financial system and an expectation that the rebased consumer price index would ensure dysinflation persists in the first half of 2025.
“At the auction, we expect rates to slightly taper”, Cordros Capital Limited said in a market update. The market has seen spot rates fluctuating as investors maintain an appetite for long duration.
In the secondary market, yields on Nigerian Treasury bills have eased on rising demand for the naira assets. Investors continue to take positions while waiting for fresh catalysts to drive yield repricing.
Strong liquidity levels continue to hamper rate upswings, analysts said, adding that positive return on investment has boosted increased demand across the board. The Nigerian Treasury Bills market traded on a subdued note throughout the week, with overall activity levels remaining light.
The week opened with limited interest across both OMO and NTB maturities, as only a few trades were recorded on select OMO papers such as the 9-Oct-2025, 23-Apr-2026, and 20-Jan-2026 bills.
Midweek, a bullish tone surfaced, particularly on mid-to-long dated maturities like the 4-Jun and 20-Jan OMO bills, with trades executed around 18.80%, although volumes remained thin
Investors are expected to shift attention to the main auction, where the CBN will offer ₦162.018 billion across 91, 182, and 364-day tenors, with only ₦27.191 billion maturing.
